** Brokerage BMO Capital changes PT on several U.S.-based utilities; expects sector to remain attractive but not outperform the broader market in 2026
** Sees sector struggling without defensive demand, citing cyclical preference, modest EPS growth, regulatory risk and volatility
** Expects fundamentals to improve with better returns, low valuations and AI-driven demand
** "Similar to our 2025 outlook, we believe 2026 will once again be a stock picker’s market. However, this year, investors should maintain a more balanced and diversified set of exposures” - BMO Capital
** Raises rating for Alliant Energy Corp LNT.O to "outperform" from "market perform"; cites strong fundamentals, potential for multiple expansion in defensive markets and growth upside from AI-driven demand
** Raises rating for CenterPoint Energy CNP.N to "outperform" from "market perform"; cites strong growth visibility and execution certainty despite current premium
Brokerage changes PT on following companies:
Company | New PT | Old PT | Upside/Downside to stock's last close |
Xcel Energy XEL.O | $86 | $91 | 16.21% upside |
WEC Energy WEC.N | $116 | $119 | 10.47% upside |
Southern Co SO.N | $95 | $109 | 9.52% upside |
Sempra SRE.N | $103 | $99 | 15.6% upside |
Duke Energy DUK.N | $130 | $136 | 11.38% upside |
Alliant Energy LNT.O | $71 | $70 | 8.94% upside |
(Reporting by Varun Sahay in Bengaluru)
((Varun.sahay@thomsonreuters.com))